Green Development

Can a housing development project be concerned with environmental and social issues and still be profitable? Yes, argues the Rocky Mountain Institute in its report "Doing Well by Doing Good: The Benefits of Green Development." RMI’s report counters some of the widely held misconceptions among developers about the financial viability of going green in real estate development:

Many developers fear that following a green agenda will delay project schedules and raise costs....The reality, however, is that well-executed green development projects…perform extremely well financially. In fact, even though many of the leading-edge developers … have strong environmental backgrounds and ideals, the financial rewards of green development are now bringing mainstream developers into the fold at an increasing pace. It is possible --indeed it is the norm--to do well financially by doing the right thing environmentally. For example, project costs can be reduced, buyers or renters will spend less to operate green buildings, and developers can differentiate themselves from the crowd--getting a big marketing boost.

Some of the general benefits of green development, then, are reduced capital costs, reduced operating costs, health and productivity benefits, higher perceived value and quality, staying ahead of regulations, as the satisfaction of doing the right thing.

In order for a housing development to have a sustainable approach, whether a planned development or traditional neighborhood development (TND) or New Urbanist project, the developer/planner must consider land use, site planning, and building design in a sustainable manner, and consider land-use issues as paramount in the overall planning process. For this reason, it is difficult to find examples of subdivisions that are sustainable. If the developer of a subdivision or housing development wishes to incorporate sustainability into the project design, he or she most likely will consider some form of planned community, or form of development which considers the land-use aspect in a more environmentally sound manner.

Subdivisions are the development form most closely associated with sprawl, a negative land-use pattern that consumes inordinate amounts of land and resources and is now becoming recognized as a major threat to quality of life in America and other developed countries.

Green Development Benefits & Basic Elements

Developers often equate green development with reduced profits and delayed schedules. On the contrary, however, green development projects often "perform extremely well financially," according to the Rocky Mountain Institute, and often command a price premium in the marketplace. There are many additional benefits of building green, as well, including lower operating costs for residents, increased comfort, higher perceived value, reduced sprawl, and protection of the natural environment.

The elements of green development fall into three basic categories: environmental responsiveness, resource efficiency, and community and cultural sensitivity. Thus, green development projects consider siting and land-use issues; conserve energy, water, and other precious resources; provide a healthy and comfortable indoor space through the use of reused and recycled products, as well as energy- and resource-efficient products; blend in with the natural environment and protect open space; increase a sense of community; and address cultural issues.